Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 1 June 2020

Thank You, Shri Hardeep Singh Puriji


Thank You, Shri Hardeep Singh Puriji

[ Minister for Housing and Urban Affairs  ]




What for ?

For launching of PM-SVANidhi [ Street Vendor Atm-Nirbhar Nidhi ]


Underneath , I reproduce the major features of this just launched scheme , along with my own earlier suggestions / questions / observations, in this regard ( in RED ) :


Feature :

Ø  The Centre on Monday launched a special micro-credit scheme to provide affordable loans of up to Rs 10,000 to street vendors

Ø  'Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi' is likely to benefit 50 lakh street vendors in the urban and rural areas of the country

Ø  Those who were vending till March 24 this year can avail the the benefit of the scheme , the duration of which is till March 2022

=========================================================

I presume that this is the only condition, and such a vendor need NOT be a “ Licensed “ vendor . In Mumbai alone, as of today, out of an estimated 4 lakh street vendors, only 12,000 are  “ Licensed “ !


It is the same condition all over India .


While sanctioning loan, it must NOT be denied even if a vendor is UN-LICENSED  ! 


Madam Sitharamanji , in her press briefing, had said : “ We received this figure of 50 lakh vendors, from various State Governments “


If “ License Requirement “ is made a condition for granting loan, than I am afraid, 45 lakh vendors will get “ disqualified “ !


In fact , in my earlier emails, I had advocated granting this loan to ANY unemployed person , who wants to take up “ Street Vending “ as a trade , with no prior experience in Street Vending !


          My suggestion stems from the following facts :


          #   Neither Private Sector nor the Public Sector, is in any position to provide jobs to
               some 12 million youth joining our work-force, each year


          #   As a result of the “ Lockdown “, some 10 crore persons ( mostly working in MSME
               sector ) , have lost their jobs. They are unlikely to get back their jobs, any time
               soon


[ source :  Social Distancing : Safest – Surest Method  /  21  April  2020  ]



=========================================================
   
Ø  "The vendors can avail a working capital loan of up to Rs 10,000 , which is repayable with monthly installments in the tenure of one year

Ø  On timely or early repayment of the loan, an interest subsidy of seven percent per annum will be credited to the bank accounts of the beneficiaries through DIRECT BENEBIT TRANSFER [ DBT ], on six monthly basis


Ø  There will be no penalty on early repayment of the loan

=========================================================

Ø  By re-paying Rs 31 per day { Principal + Interest } , he avoids hafta of Rs 50 per day { Daily saving of Rs 19 }

Ø  Annual saving of Rs 6,945 for each vendor ( round off to Rs 7,000 )

Ø  Saving of Rs 3,500 Crore per year for 50 lakh vendors !


Ø  Once the Scheme gets launched and loan-recipient vendors realize that they need not pay DAILY HAFTA to police, there is a good possibility that 500 lakh persons come forward to become STREET VENDORS

{ source :  Street Vendor Loan Scheme  /  14  May  2020  }


======================================================

Ø  Scheme provides for escalation of the Credit Limit, on timely or early repayment of loan ……this means, if a street vendor repays the installments on time or earlier, he or she can develop his or her Credit Score that makes him/her eligible for higher amount of term-loan such as Rs 20,000

Ø  Urban local bodies will play a pivotal role in the implementation of the scheme.

Ø  They will leverage the network of all stakeholders like,
#    Street Vendors Associations

#    Business Correspondents [ BCs ]

#    Agents of Banks

#    Micro-finance Institutions [ MFIs ]

#    Self Help Groups [ SHGs ] and their Federations

#    Digital Payment Aggregators like BHIM


Ø  A digital platform with a Web Portal or a Mobile App , is being developed to administer the scheme with end-to-end solutions


Ø  The IT platform will also help in integrating the vendors into the formal financial system .


Ø  This platform will integrate the Web Portal or the Mobile App with

       #  UdyamiMitra  portal of SIDBI for credit management and

      #   PAiSA portal of MoHUA to administer interest subsidy automatically


========================================================
          
#  Hawkers will declare themselves “Self- Employed”, by registering so on BMC web
              site

#  BMC will issue to them , a hawking license – a plastic card

              with, photo, name, gender, birth-date, address, mobile no, Aadhar No, PAN etc .

              Card will be embedded with a pre-paid / rechargeable FasTag , which will

              automatically transfer to BMC’s bank account, LICENSE FEE, as mandated


 #  On hawker’s Smartphone ( with BlueTooth / NFC / Biometric ), BMC will

             install a Mobile App HawkWalk ? ], which can read the FasTag in the plastic card

             and display ( 24x7 ), exact location of that hawker on a DASHBOARD in the

             Central Hawking Control Room of BMC (  much better than rigid Sensor anklets on

             feet ! )


#   If a hawker uses mobile payment app BHIM for accepting payments against his

             sale , 5 % of each SALE PROCEED will get automatically credited to his

             monthly License Fee.

            This great incentive will accelerate DIGITAL PAYMENTS and help organize this

            totally “un-organized “business sector


[  source : BMC proposes : Hawkers will dispose ?  ……………………. / 26  Feb  2020   ]


=========================================================

Dear Shri Hardeep Singh Puriji,


While congratulating you for this un-paralled initiative in generating Self Employment, I urge you to ensure that :


Ø  “ Loan Givers “ [ Banks – MFIs etc ] , do not insist that the applicant possesses a Street  Vendor license ( I strongly suspect , they will do so !  )


Ø  The VESTED interests ( Local Police and Municipal officers , who will lose their daily Hafta ) do not stop a person from vending his / her wares on the streets ( license or no license )


Ø  As soon as a person has been given this loan, all Municipalities / Gram Panchayats will be required ( mandatorily ) that he / she is issued a Street Vendor License – even without having to make a separate application for it . In fact , UdyamiMitra web portal must direct the concerned local authority to issue such a license


And, lastly, please re-consider that condition ( of a person being a Vendor on 24th March 2020 )


Please give this loan to ANY unemployed person who wishes to become a Street Vendor


There is no other “ trade “ which 12 million unemployed can start with an investment of just Rs 10,000 !


Let us honour the “ Dignity of Labour “ , of those wanting to become Self Employed



With regards,


Hemen Parekh

hcp@recruitGuru.com   /  02  June  2020  

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